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JOINT CIRCULAR No

JOINT CIRCULAR No. 75/2001/TTLT-BTC-BTM-TCHQ OF SEPTEMBER 24, 2001 GUIDING THE REDUCTION OF IMPORT TAX ON GOODS OF LAO ORIGIN SPECIFIED IN THE AGREEMENT BETWEEN THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM AND THE GOVERNMENT OF THE LAO PEOPLE’S DEMOCRATIC REPUBLIC (THE 1999 CUA LO AGREEMENT) ON CREATION OF FAVORABLE CONDITIONS FOR PEOPLE, TRANSPORT MEANS AND GOODS TO TRAVEL ACROSS THE BORDER OF THE TWO COUNTRIES

Pursuant to the agreement reached between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic concluded on August 23, 1999 in Cua Lo provincial town, Nghe An province, Vietnam;

In furtherance of the Prime Minister’s directing opinions expressed in the Government’s Official Dispatch No.1384/CP-QHQT of December 30, 1999 concerning the implementation of trade agreements with Laos, the Government Office’s Official Dispatch No.2252/VPCP-QHQT of May 6, 2000 on tax exemption and reduction for goods of Lao origin or made in Laos, which are imported into Vietnam; and the Government’s Official Dispatch No.261/CP-QHQT of April 5, 2001 on boosting trade ties with Laos;

The Ministry of Finance, the Ministry of Trade and the General Department of Customs hereby jointly guide the reduction of import tax on goods of Lao origin as follows:

I. SCOPE OF APPLICATION

A. Goods made in the Lao People’s Democratic Republic and imported into Vietnam shall enjoy the import tax rate equal to 50% of the preferential one specified in the Preferential Import Tariff, if they satisfy the following conditions:

1. Being those specified in the List of goods items eligible for 50% (fifty per cent) import tax reduction, issued together with this Circular. The specific quantity of each category of goods imported from Laos and eligible for 50% import tax reduction shall be annually announced by the Ministry of Trade on the basis of the quantities agreed upon with the Lao Ministry of Trade.

In cases where a goods item concurrently satisfies the conditions for enjoying 50% import tax reduction and those for enjoying a CEPT preferential tax rate, the lower rate of these two tax rates shall apply.

2. Having a certificate of origin (C/O) issued by the Ministry of Trade or the Trade Bureaus or the Trade Services of Vientiane city and Saysomboun special zone of Laos.

3. Obtaining written certification that they are covered by the tax preferential program under the agreement between the two governments, issued by the Ministry of Trade or Trade Services of Vientiane city and Saysomboun special zone of Laos.

4. Goods imported into Vietnam through border-gates officially opened along the Vietnam-Laos border.

B. Procedures for producing and inspecting certificates of origin (C/O):

Enterprises that import Lao goods, which are on the List of goods items eligible for 50% import tax reduction, issued together with this Circular, and wish to enjoy the import tax reduction preference shall have to produce to the customs offices the originals of certificates of origin of the goods together with the prescribed import voucher sets upon carrying out the import procedures.

In cases where enterprises have not yet obtained C/O for production upon carrying out the import procedures, the customs offices, when calculating tax, shall apply the ordinary tax rates or CEPT preferential tax rates (if the conditions therefor are fully met) and accept the delayed C/O production within 30 days counting from the date of submitting customs declarations. After submitting C/O, enterprises shall be considered for reimbursement of overpaid tax amount (the difference between the paid tax amount calculated at the ordinary tax rate or CEPT preferential tax rate and that calculated at 50%-reduced preferential import tax rate specified in the Import Tariff).

Importing enterprises shall be held responsible before law for the legality and validity of the already submitted C/O. If any C/O fraudulence is detected, the concerned importing enterprise(s) shall be handled according to the current law provisions.

When having any doubt about the truthfulness and accuracy of certificates of origin, the customs offices may request the concerned enterprises to supply written evidences to prove it. The time limit for enterprises to supply additional vouchers shall be 30 days after the C/O is submitted. Pending the re-inspection result, the 50% tax rate reduction for the concerned goods lots shall temporarily not be given, and the ordinary tax rates or CEPT preferential tax rates (if the conditions therefor are fully met) shall be applied. And at the same time, the procedures for goods release shall continue to be carried out if such goods items are not banned or restricted from import and there is no doubt about false declaration of goods. In cases where goods owners have enough documents to prove the Lao origin of their goods, the overpaid tax amount shall be considered to be reimbursed (the difference between tax amount calculated at the ordinary tax rates or CEPT preferential tax rates already paid and that calculated at 50%-reduced preferential import tax rates specified in the Import Tariff).

II. OTHER REGULATIONS

The regulations on tax calculation bases, tax collection and payment regime, accounting of tax amounts, report on tax collection and payment results, import tax reduction, tax reimbursement, tax arrears collection and handling of violations shall be implemented in compliance with the provisions of the Law on Export Tax and Import Tax and the current guiding documents.

III. ORGANIZATION OF IMPLEMENTATION

Once every three months (by 15th day of the following month at the latest) and annually (by February 15th of the following year at the latest), the General Department of Customs shall sum up and report the quantity and value (calculated at the import tax calculation prices) of import goods subject to this Circular to the Ministry of Trade and the Ministry of Finance. In cases where it detects that the Lao side issues written certifications for goods in excess of the volume already agreed upon, the Ministry of Trade shall work together with the Lao Ministry of Trade in devising appropriate remedial measures.

This Circular takes effect after its signing.

This Circular replaces Joint Circular No.77/1999/TTLT-BTC-BTM-TCHQ of June 22, 1999 of the Ministry of Finance, the Ministry of Trade and the General Department of Customs guiding the implementation of the Prime Minister’s Decision No.181/1998/QD-TTg of September 21, 1998 on the import tax reduction for goods made in the Lao People’s Democratic Republic.

Any problems arising in the course of implementation should be reported by the concerned units to the Ministry of Finance, the Ministry of Trade and the General Department of Customs for study, guidance and timely supplements.

For the Minister of Finance

Vice Minister
VU VAN NINH

For the Minister of Trade

Vice Minister
MAI VAN DAU

For the General Director of Customs

Deputy General Director
LE MANH HUNG

LIST OF GOODS ITEMS ELIGIBLE FOR 50% IMPORT TAX REDUCTION

(Issued together with Joint Circular No. 75/2001/TTLT-BTC-BTM-TCHQ of September 24, 2001 of the Ministry of Finance, the Ministry of Trade and the General Department of Customs)

Code

Description of goods groups

Notes

Heading

Subheading

0813

Dried fruits, other than those of headings No.0801 to 0806; mixtures of nuts or dried fruits of this Chapter

0813

40

00

- Other dried fruits

Particularly for:

+ Orang-outang fruit

x

0908

Nutmeg, mace and cardamom

0908

30

00

- Cardamom

Particularly for:

+ Amomum longiligulare

x

1006

Rice

1006

20

00

- Husked (brown) rice

x

1006

30

00

- Preliminarily or fully milled rice, whether or not polished or glazed

x

1006

40

00

- Broken rice

x

1207

Other oil seeds and oleaginous fruits, whether or not broken

1207

40

00

- Sesame seeds

x

1211

Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered

1211

90

- Others:

- - Of a kind used primarily in pharmacy:

1211

90

11

- - - Pyrethrum, cut, crushed or powdered

x

1211

90

12

- - - Pyrethrum of other kinds

x

1211

90

13

- - - Cannabis, cut, crushed or powdered

x

1211

90

14

- - - Cannabis of other kinds

x

1211

90

15

- - - Cocoa, cut, crushed or powdered

x

1211

90

16

- - - Cocoa of other kinds

x

1211

90

17

- - - Other, cut, crushed or powdered

x

1211

90

19

- - - Other

x

1301

Lac; natural gums, resins, gum-resins, oleo resins (for example, balsams)

1301

10

- Lac:

1301

10

10

- - Shellac and other refined lacs

x

1301

10

90

- - Other

x

1301

90

00

- Other

Particularly for:

+ Benzoin (styrax tonkinensis pyerre)

+ Chai pha

x

x

1401

Vegetable materials of a kind used for plaiting (such as, bamboos, rattans, reeds, rushes, osier and raffia, cleaned, bleached or dyed cereal straw, and lime bark)

1401

20

00

- Rattans

x

1704

Sugar confectionery (including white chocolate), not containing cocoa

1704

90

00

- Other sugar confectionery

Particularly for:

+ Fruit candy

x

2009

Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter

x

2401

Unprocessed tobacco; tobacco refuse

2401

10

00

- Tobacco, not stemmed

Particularly for:

+ Dried tobacco

x

2401

20

00

- Tobacco, partly or wholly stemmed

Particularly for:

+ Dried tobacco

x

2517

Pebble, gravel, broken or crushed stone, of a kind used primarily for concrete aggregates, metalling land roads or railroads, or other ballast, shingle and flint, whether or not heat-treated; macadam of slag, dross or similar industrial waste, whether or not incorporating the material cited in the first part of this heading; tarred macadam, granules, chippings and powder, of stones of headings No.2515 and 2516, whether or not heat-treated

2517

20

00

- Macadam or slag, dross or similar industrial waste, whether or not incorporating the materials cited in the first part of sub-heading No.251710

x

2517

30

00

- Tarred macadam

x

2520

Gypsum (mineral calcium sulfate); anhydrite; plaster (consisting of calcined gypsum or calcium sulfate), whether or not colored, with or without small quantities of accelerators or retarders

x

2609

00

00

Tin ores and concentrates thereof

x

3208

Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter

Particularly for:

+ Paints

x

3209

Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium

Particularly for:

+ Paints

x

3210

00

Other paints and varnishes (including enamels, lacquers and distempers); prepared water pigments of a kind used for finishing leathers

Particularly for:

+ Paints

x

3401

Soap; organic surface-active products and preparations for use as soap, in the form of bars, cakes, molded pieces or other shapes, whether or not containing soap; paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent

Particularly for:

+ Perfumed soap, powder detergent

x

3917

Tubes, pipes and hoses, and fittings therefor (for example, joints, elbows, flanges), of plastic

Particularly for:

+ Water pipes

x

4401

Fuel wood, in logs, in billets, in twigs, faggots or similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar form

4401

30

00

- Sawdust, wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms

Particularly for:

+ Powdered tree bark for making incense

x

4403

Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared

x

4407

Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-jointed, of a thickness of over 6 mm

Particularly for:

+ Sawn or chipped wood

x

4412

Plywood, veneered panels and similar laminated wood

Particularly for:

+ Plywood

x

4414

00

00

Wooden frames for paintings, photographs, mirrors or similar wooden objects

x

4418

Builders’ joinery and carpentry of wood, including cellular wood panels, assembled parquet panels, shingles and shakes

4418

90

90

- - Other

Particularly for:

+ Flooring planks

x

4419

00

00

Tableware and kitchenware, of wood

x

4420

Wood marquetry and inlaid wood; caskets and cases for jewelry or cutlery, and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling in Chapter 94

4420

10

00

- Statuettes and other ornaments, of wood

x

4420

90

00

- Other

Particularly for:

+ Inlaid, engraved or carved articles

x

5701

Carpets and other textile floor coverings, made by knotting method, whether or not made up in pieces

Particularly for:

+ Those already made up in pieces

x

5702

Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up in pieces, including "kelem", "schumacks", "karamanie" and similar hand-woven rugs

5702

10

00

- "Kelem", "schumacks", "karamanie" and similar hand-woven rugs

x

5702

20

00

- Floor coverings of coconut fiber (coir)

x

- Other, of pile construction, made up in pieces:

5702

41

00

- - Of wool or fine animal hair

x

5702

42

00

- - Of man-made textile materials

x

5702

49

00

- - Of other textile materials

x

- Other, not of pile construction, made up in pieces:

5702

51

00

- - Of wool or fine animal hair

x

5702

52

00

- - Of man-made textile materials

x

5702

59

00

- - Of other textile materials

x

5703

Carpets and other textile floor coverings, tufted, whether or not made up in pieces

Particularly for:

+ Those already made up in pieces

x

5704

Carpets and other textile floor coverings, of felt, not tufted or flocked, whether or not made up in pieces

Particularly for:

+ Those already made up in pieces

x

5705

00

00

Other carpets and other textile floor coverings, whether or not made up in pieces

Particularly for:

+ Those already made up in pieces

x

5805

00

00

Hand-woven tapestries of the type Gobelins, Flanders, Aubusson, Beauvais and the like, and needle-worked tapestries (for example, petite point, cross stitch), whether or not made up in pieces

Particularly for:

+ Those already made up in pieces

x

6101

Men’s or boys’ overcoats, motor-riding coats, capes, cloaks, anoraks (including ski-jackets), wind-cheaters, wind-jackets and similar articles, knitted or crocheted, other than those of heading No.6103

x

6102

Women’s or girls’ overcoats, motor-riding coats, capes, cloaks, anoraks, (including ski-jackets), wind-cheaters, wind-jackets and similar articles, knitted or crocheted, other than those of heading No.6104

x

6103

Men’s or boys’ suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted

x

6104

Women’s or girls’ suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted

x

6105

Men’s or boys’ shirts, knitted or crocheted

x

6106

Women’s or girls’ shirts, blouses and shirt-blouses, knitted or crocheted

x

6107

Men’s or boys’ underpants, briefs, night-shirts, pyjamas, bathrobes, dressing gowns and similar articles, knitted or crocheted

x

6108

Women’s or girls’ slips, petticoats, briefs, panties, night-dresses, pyjamas, negligees, bathrobes, dressing gowns and similar articles, knitted or crocheted

x

6109

T-shirts, singlets and other vests, knitted or crocheted

x

6110

Jerseys, pullovers, cardigans, waist-coats and similar articles, knitted or crocheted

x

6111

Babies’ garments and clothing accessories, knitted or crocheted

x

6112

Track suits, ski suits and swimwear, knitted or crocheted

x

6113

00

Garments, made up of knitted or crocheted fabrics of heading No.5903, 5906 or 5907

x

6114

Other garments, knitted or crocheted

x

6115

Panty hoses, tights, stockings, socks and other hosiery, including stockings for varicose veins and footwear without applied soles, knitted or crocheted

x

6116

Gloves, mittens and mitts, knitted or crocheted

x

6117

Other made up clothing accessories, knitted or crocheted; knitted or crocheted parts of garments or of clothing accessories

x

6201

Men’s or boys’ overcoats, motor-riding coats, capes, cloaks, anoraks (including ski-jackets), wind-cheaters, wind-jackets and similar articles, other than those of heading No.6203

x

6202

Women’s or girls’ overcoats, motor-riding coats, capes, cloaks, anoraks,(including ski-jackets), wind-cheaters, wind-jackets and similar articles, other than those of heading No.6204

x

6203

Men’s or boys’ suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear)

x

6204

Women’s or girls’ suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear)

x

6205

Men’s or boys’ shirts

x

6206

Women’s or girls’ shirts, blouses and shirt-blouses

x

6207

Men’s or boys’ singlets and other undervests, underpants, briefs, night-shirts, pyjamas, bathrobes, dressing gowns and similar articles

x

6208

Women’s or girls’ singlets and other undervests, slips, petticoats, briefs, panties, night-dresses, pyjamas, negligees, bathrobes, dressing gowns and similar articles

x

6209

Babies’ garments and clothing accessories, knitted or crocheted

x

6210

Garments, made up of fabrics of heading No.5602, 5603, 5903, 5906 or 5907

x

6211

Track suits, ski suits and swimwear; other garments

x

6212

Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted

x

6213

Handkerchiefs

x

6214

Shawls, scarves, mufflers, mantillas, veils and the like

x

6215

Ties, bow ties and cravats

x

6216

00

00

Gloves, mittens and mitts

x

6217

Other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading No.6212

x

6401

Waterproof footwear with outer soles and uppers of rubber or of plastics, the upper of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes

6401

10

00

- Footwear incorporating a protective metal toe-cap

Particularly for:

+ Sandals and slippers

x

- Other footwear:

6401

99

00

- - Other

Particularly for:

+ Sandals and slippers

x

6402

Other footwear with outer soles and uppers of rubber or plastics

Particularly for:

+ Sandals and slippers

x

6403

Footwear with outer soles of rubber, plastics, leather or composition leather (leatherette) and uppers of leather

Particularly for:

+ Sandals and slippers

x

6404

Footwear with outer soles of rubber, plastics, leather or synthetic leather (leatherette) and uppers of textile materials

Particularly for:

+ Sandals and slippers

x

6405

Other footwear

6405

90

90

- - Other

Particularly for:

+ Sandals and slippers

x

7114

Articles of goldsmiths’ or silversmiths’ wares and parts thereof, of precious metal or of metal clad with precious metal

Particularly for:

+ Articles of gold or silver

x

8414

Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters

- Fans:

8414

51

00

- - Desk, floor or wall fans, ventilating fans, ceiling or roof fans, with a self-contained electric motor of an output not exceeding 125 W

x

8414

59

- - Other:

8414

59

10

- - - Of a capacity of up to 125 kW

x

8414

59

90

- - - Of a capacity exceeding 125 kW

x

8415

Air conditioners, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated

x

8418

Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioners of heading No.8415

Particularly for:

+ Refrigerators

x

8516

Electric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electro-thermic hair dressing apparatus (for example, hair dryers, hair curdles, curling tong heaters) and hand dryers; electric smoothing irons; other electro-thermic appliances of a kind used for domestic purposes; electric heating resistors, other than those of heading No.8545

8516

60

10

- - Electric rice cookers

x

8528

Television receivers, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors

- Television receivers, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus:

8528

12

00

- - Color type

x

8528

13

00

- - Black and white or other monochrome

x

8544

Insulated (including enameled or anodized) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors. Optic fiber cable, made of separately coated optic fibers, whether or not fitted with electric conductors or connectors

Particularly for:

+ Plastic-coated electric conductors

+ Telephone cables

x

x

9401

Seats (other than those of heading No.9402), whether or not convertible into beds, and parts thereof

Particularly for:

+ Inlaid or engraved articles

x

9403

Other furniture and parts thereof

9403

30

00

- Wood furniture for office purposes

Particularly for:

+ Inlaid, engraved or carved articles

x

9403

40

00

- Kitchen wood furniture

x

9403

50

00

- Bedroom wood furniture

x

9403

60

00

- Other wood furniture

x

Particularly for:

+ Inlaid, engraved or carved articles

x

Application guidance: In cases where only headings (4-digit codes) or sub-headings (6-digit codes) are enumerated without 8-digit codes and "Particularly for" sections, all goods items under 8-digit codes or "Particularly for" sections belonging to the said 4-digit headings or 6-digit sub-headings shall be eligible for import tax reduction.

- In cases where headings (4-digit codes) or sub-headings (6-digit codes) are extended to 8-digit codes or "Particularly for" sections, only goods items under the already extended 8-digit codes or "Particularly for" sections shall be eligible for import tax reduction.

- In cases where 8-digit codes are entailed by "Particularly for" sections, only goods items specified in such "Particularly for" sections shall be eligible for import tax reduction.

(*) Headings and sub-headings of goods, and goods items marked with (x) at the column notes shall be eligible for 50% import tax reduction as provided for by this Circular.-

LIST OF GOODS ITEMS ELIGIBLE FOR 50% IMPORT TAX REDUCTION

IN 2001 UNDER THE PREFERENTIAL IMPORT TARIFF

(Issued together with Joint Circular No. 75/2001/TTLT-BTC-BTM-TCHQ of September 24, 2001 of the Ministry of Finance, the Ministry of Trade and the General Department of Customs)

Ordinal number

Names of goods

Headings under the Import Tariff

Calculation units

Quantity

I.

Wood and wood products

1

Flooring planks

4418

m3

50,000

2

Household wood furniture made of natural forest timber

4414

4419

9401

9403

USD

500,000

3

Plywood

4412

sheet

100,000

4

Sawn timber

4407

m3

100,000

II.

Minerals

1

Plaster

2520

ton

200,000

2

Tin

2609

ton

200

3

Macadam

2517

USD

50,000

III.

Forest products

1

Chai pha

1301

USD

200,000

2

Benzoin (styrax tonkinensis pierre)

1301

USD

200,000

3

Processed rattans

1401

USD

500,000

4

Vang dang (coscinium usitatum pierre)

1211

USD

20,000

5

Careya sphaerica

1207

ton

1,500

6

Orang-outang fruit

0813

USD

50,000

7

Lac

1301

USD

200,000

8

Medicinal plants

1211

USD

20,000

9

Amomum longiligulare

0908

ton

100

10

Powdered tree bark for making incense

4401

USD

50,000

11

Job’s tears

1211

ton

5,000

IV

Farm produce

1

Sticky rice, long-grain rice

1006

USD

5,000

2

Dried tobacco

2401

USD

200,000

V

Industrial products

1

Fruit juice, fruit candy

2009, 1704

USD

50,000

2

Paints

3208

3209

3210

USD

100,000

3

Plastic water pipes

3917

USD

100,000

4

Electric fans

8414

unit

50,000

5

Garment

From 6101 to 6117, from 6201 to 6217

USD

100,000

6

Assorted sandals and slippers

From 6401 to 6405

pair

20,000

7

Detergent and perfumed soap

3401

USD

5,000